One of the first questions an investor will ask when looking at a new HYIP investment plan is, “When will I break even?” In the back of the mind of every investor is the fear that a program will close its doors before he is “in profit,” again, before he breaks even. Well, how do you determine this? For the experienced investor, this is a very easy calculation. But, for the newbie, it might be a little hard to digest. So, this article is primarily aimed at the person who has little or no experience with the HYIP industry — with the hope that this business of breaking even will be completely clear after we’re finished. If you have read any of the Emily News reviews, you have probably noticed that, when analyzing an investment plan, one of the little calculations that we always do is to check when a plan will break even. So, that’s what we’re going to do that here. Again, when we’re finished, you will be an expert on this.
Examples of Break Even Points.
Now let’s get down to business and work a number of examples…
To begin, if an investment plan pays you 1% interest per day, how long will it take you to break even? Simple enough. When you’re even, you will have earned 100% of your investment back. So, you divide 100% by the interest per day to get the number of days for this to happen. In this case, the calculation couldn’t be simpler. One hundred divided by one is 100 days. In numbers, 100/1 = 100. Now, suppose that a program pays 1.3% interest per day. When will you break even? The calculation is the same and is 100/1.3 = 76.9 days which rounds off to 77 days. Very simple!
Using this information, it’s easy to come up with a table of break even points for any percent interest that you can come up with. Here’s what it looks like for interest rates from 0.1% up to 5.0%. I doubt if you will encounter any of the rates on the low end of this scale in the HYIP world (although if your neighborhood bank offered them, it would be phenomenal!). And, if you encounter any of the rates on the high end, it might be best to avoid the program as they simply aren’t sustainable — at least not on the planet where I happen to live.
| Rate | Days to Break Even |
| 0.1 | 1000 |
| 0.2 | 500 |
| 0.3 | 333 |
| 0.4 | 250 |
| 0.5 | 200 |
| 0.6 | 167 |
| 0.7 | 143 |
| 0.8 | 125 |
| 0.9 | 111 |
| 1.0 | 100 |
| 1.1 | 91 |
| 1.2 | 83 |
| 1.3 | 77 |
| 1.4 | 71 |
| 1.5 | 67 |
| 1.6 | 63 |
| 1.7 | 59 |
| 1.8 | 56 |
| 1.9 | 53 |
| 2.0 | 50 |
| 2.1 | 48 |
| 2.2 | 45 |
| 2.3 | 43 |
| 2.4 | 42 |
| 2.5 | 40 |
| 2.6 | 38 |
| 2.7 | 37 |
| 2.8 | 36 |
| 2.9 | 34 |
| 3.0 | 33 |
| 3.1 | 32 |
| 3.2 | 31 |
| 3.3 | 30 |
| 3.4 | 29 |
| 3.5 | 29 |
| 3.6 | 28 |
| 3.7 | 27 |
| 3.8 | 26 |
| 3.9 | 26 |
| 4.0 | 25 |
| 4.1 | 24 |
| 4.2 | 24 |
| 4.3 | 23 |
| 4.4 | 23 |
| 4.5 | 22 |
| 4.6 | 22 |
| 4.7 | 21 |
| 4.8 | 21 |
| 4.9 | 20 |
| 5.0 | 20 |
For 1% and 1.3% interest rates, the table checks our little calculations above.
You might also notice that in cases like 4.9% and 5%, the number of days to break even comes out the same. The true number of days for 4.9% is around 20.4 days. However, this rounds off to 20 days. Actually, we should round UP to 21 days because a fraction of a day is effectively a whole day when it comes to processing a withdrawal. However, my spreadsheet only rounds off, not UP. So, this will have to suffice. It’s certainly close enough for our purposes here.
Let’s take a look at a few of these numbers. First of all, for the lowest interest rate of 0.1%, it takes 1,000 days to break even. That’s almost three years. There might never have been a HYIP that has lasted this long. So, you have to stay away from low interest rates like these. Perhaps a low limit on interest rates to consider might be one that will allow you to break even in one year. That would be around 0.3%. Better yet, for a sensible HYIP, you might want to break even in no longer than around three months. That would put you in the ballpark of 1.1%. You might say that one percent and over might be acceptable for a HYIP. But, don’t completely dismiss lower rates if a program has very positive indicators that it will be a long-term survivor. Of course, the issue of how to determine this is the dilemma faced by all HYIP investors. We offered some ideas on this in HYIP Insights #8 that you can read here. However, always remember that nothing is for sure in this “game.” So, do your “Due Diligence” before making an investment and, as we always say, never invest more than you can afford to lose.
A few other “key numbers” might be the interest rate required in order to break even in two months which would be around 1.7% and in one month which would be around 3.3%. Getting much higher than this gets very risky very fast. You always have to carefully weigh the possibility of high profit against the probability of a program surviving. Remember, you don’t want to just break even; you want a program to be round for a LOT longer than that so you can earn some serious money!
One final point is that these days to break even are the same no matter what the size of your investment. Ten dollars or $10,000: it doesn’t matter.
Well, that’s about it. I hope that this has been some help to you.
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Please don’t forget that you can post your screenshots of payment, scam, or other proofs related to a program by clicking on the “Details” button in the Emily News monitor. Also, don’t forget that you can add your referral link when you post your proofs — another way to build your downline.
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